Prospective exemption amendment: earlier software imports retained prima facie exemption, justifying waiver of pre-deposit at stay stage.

An amendment to an exemption notification was treated as prospective because it was not expressed to operate retrospectively; the later explanation excluding software for telecom and other specified applications could not govern imports made earlier. On that basis, the importer established a strong prima facie case that software imported in October 1997 remained within the exemption under Notification No. 11/97-Cus. at the stay stage. The tribunal therefore granted waiver of pre-deposit of the entire duty demanded and allowed interim relief, leaving the appeal to be decided on merits.

---

---

Issues: Whether, in an application for waiver of pre-deposit, the importer had made out a prima facie case for exemption under Notification No. 11/97-Cus. in respect of software imported prior to the amendment introduced by Notification No. 3/98 dated 11-2-98.

Analysis: The import was made in October 1997, when Notification No. 11/97-Cus. granted exemption to computer software. The subsequent amendment of 11-2-98 added an explanation clarifying the scope of the exemption and excluding software for telecom and other specific applications. The amendment was treated as prospective, and the Board clarification issued on the same date could not retrospectively govern imports made earlier. On that basis, the appellant was found to have a strong prima facie case at the stage of stay.

Conclusion: The appellant was entitled to waiver of pre-deposit of the entire duty demanded, and the stay application was allowed.

Final Conclusion: The order granted interim relief to the appellant on the basis of the prospective operation of the amendment and the existence of a strong prima facie case, while leaving the appeal to be heard on merits.

Ratio Decidendi: An amendment to an exemption notification operates prospectively unless expressly made retrospective, and a strong prima facie case on exemption entitles the applicant to waiver of pre-deposit at the stay stage.

---